The Australian share market has closed lower as investors move their attention from Greece to Spain and upcoming meetings of the US central bank and leaders of the European Union.
It is hoped that the US Federal Reserve at a meeting on Wednesday will undertake new stimulus measures to boost the flagging US economy in the wake of a recent string of weak data.
At 1615 AEST on Tuesday, the benchmark S&P/ASX200 index was down 13.6 points, or 0.33 per cent, at 4,123.3 points, while the broader All Ordinaries index had shed 16.5 points, or 0.39 per cent, at 4,167.4 points.
On the ASX 24, the June share price index futures fell 10 points to 4,125 points, with 149,013 contracts traded, according to preliminary figures.
CMC Markets chief market analyst Ric Spooner said investors were “quiet and nervous” on Tuesday.
“It’s the same old, same old – Europe is dominating things at the moment,” Mr Spooner said.
He said investors were concerned about high Spanish bond yields, which, if the problem persisted, would make it difficult for the Spanish government to continue to fund itself without outside assistance.
“On the other hand, we have these meetings coming up, in particular the European leaders’ summit next week,” Mr Spooner said.
“Whilst people are nervous about what’s happening in Europe, they’re also nervous about taking too much risk before that (European leaders) meeting and the Federal Reserve meeting this week.
“Wait and see – I think is where we are at the moment.”
On the local market in the resources sector, global miner BHP Billiton was 15 cents lower at $32.49, and Rio Tinto eased 23 cents to $56.77.
Among the major banks, ANZ was 12 cents weaker at $21.68, National Australia Bank added 14 cents to $22.95, Westpac improved four cents to $20.80, and Commonwealth Bank lifted five cents to $51.59.
Among other stocks, engineering firm Downer EDI was six cents lower at $3.18 after it won a $71.7 million contract to install power lines and substations at BHP Billiton’s Jimblebar iron ore mine in Western Australia’s Pilbara region.
Media publisher Fairfax was 5.5 cents lower at 59.5 cents as investors speculated Gina Rinehart would not seek to increase her 18.7 per cent stake in the company.
Renovation group Alesco nudged up one cent to $2.02 as paint maker DuluxGroup extended the time frame for its $188 million takeover offer for Alesco.
Preliminary national turnover was 1.38 billion shares worth $2.96 billion, with 623 stocks down, 371 up and 395 unchanged.
